Responsible Business Conduct Due Diligence Practices in Ukraine’s Energy Sector
Date of publication
About the report
Promoting and enabling responsible business conduct (RBC) helps attract and retain quality investments, and ensures that business activities contribute to broader value creation and sustainable development. RBC centres around the expectation that all businesses – regardless of their status, size, ownership structure or sector – avoid and address negative impacts of their activities on the society and the environment by integrating environmental and social issues within core business operations, supply chains and business relationships.
A key element of RBC is risk-based due diligence, a process through which businesses can identify, prevent and mitigate actual and potential adverse impacts, and account for how they are addressed. RBC due diligence practices should be applicable not only to company operations but also throughout supply chains and business relationships.
The energy sector is associated with important RBC-related challenges, including environmental, social and governance risks. This study provides a baseline understanding of RBC due diligence practices in Ukraine’s energy companies. Based on surveys conducted with some of the main energy practitioners in Ukraine and on supplementary research, it outlines key RBC risks that companies in Ukraine’s energy sector face and efforts through which these risks are identified, addressed and mitigated. The study also outlines practice gaps and provides considerations for companies to take into account when improving due diligence practices in aligning with OECD RBC instruments and standards.
A preliminary version of this report was made available following a roundtable discussion among Ukrainian governmental and non-governmental stakeholders on June 23, 2021. It was subsequently finalised and officially launched alongside the OECD Energy Investment Policy Review of Ukraine.
About the OECD Due Diligence Guidance for Responsible Business Conduct
The OECD Due Diligence Guidance for Responsible Business Conduct provides practical support to enterprises on the implementation of the OECD Guidelines for Multinational Enterprises by providing plain-language explanations of its due diligence recommendations and associated provisions.